On Monday, China announced cuts to its benchmark interest rates, the latest in a string of measures to revive confidence in an economy struggling to grow after the COVID pandemic. Chinese equity markets have swung as investors anticipated sweeping measures from official press conferences, then were left disappointed as policies don’t quite measure up to the scale of China’s economic challenges.
Yet Beijing’s “relatively reluctant policy easing” could be the result of its wanting to preserve room to maneuver in the event of renewed trade friction with the U.S., Goldman Sachs economists suggested in a report released Monday.
